Published: 8 December 2025IndiaBondsGeneral
RBI Announces ₹1 Lakh Crore OMO Purchases and $5 Billion USD/INR Swap to Inject Liquidity
Following the December 5 monetary policy decision to cut the repo rate by 25 basis points to 5.25%, the Reserve Bank of India announced additional liquidity measures on December 9. The RBI will conduct Open Market Operations (OMO) purchases of ₹1 lakh crore in two tranches on December 11 and 18, along with a 3-year USD/INR Buy-Sell swap of $5 billion on December 16.
System liquidity has remained in surplus, averaging ₹1.5 lakh crore per day since the last MPC meeting. The Standing Deposit Facility (SDF) rate now stands at 5.00%, while the Marginal Standing Facility (MSF) rate and Bank Rate are at 5.50%. The RBI raised its FY26 GDP growth forecast to 7.3% and lowered its inflation estimate to 2%. The policy stance remains accommodative.
0Mains angle
Q: Examine RBI's December 2025 liquidity injection — 1 lakh crore rupees OMO purchases and 5 billion dollar USD-INR swap — in the accommodative policy context.
Answer (50 words):
After cutting the repo rate 25 basis points to 5.25 percent on 5 December, RBI announced OMO purchases of 1 lakh crore rupees in two tranches on 11 and 18 December, plus a three-year 5 billion dollar USD-INR buy-sell swap on 16 December. FY26 growth raised to 7.3 percent; inflation lowered.
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Linked questionMedium
RBI projected India's GDP growth for FY26 at what rate in the December 2025 monetary policy?
Explanation · Correct answer ARBI projected real GDP growth for FY26 at 7.30% in the December 2025 monetary policy statement.
Frequently asked questions
What liquidity measures did the RBI announce on December 9?
After the December 5 monetary policy decision cut the repo rate by 25 basis points to 5.25%, the Reserve Bank of India announced additional liquidity measures on December 9.
How will the RBI conduct the ₹1 lakh crore OMO purchases?
The RBI will conduct Open Market Operations purchases of ₹1 lakh crore in two tranches. The tranches are scheduled for December 11 and December 18.
What USD/INR swap did the RBI announce?
The RBI announced a 3-year USD/INR Buy-Sell swap of $5 billion. The swap is scheduled for December 16.
What did the article report about liquidity, rates, and forecasts?
System liquidity has remained in surplus, averaging ₹1.5 lakh crore per day since the last MPC meeting, while the SDF rate is 5.00% and the MSF rate and Bank Rate are 5.50%. The RBI raised its FY26 GDP growth forecast to 7.3%, lowered its inflation estimate to 2%, and kept the policy stance accommodative.
